Bulls Buying The Bounce Offered Little
Yesterday's recovery set the groundwork for a bounce but the gap higher took away most of the opportunity the bullish set-up offered. Weakness at this point would be bearish so wouldn't be buying but if in then hold until the morning breakout gap closes and reassess.
The S&P generated a small uptick in relative performance but not enough to trigger a 'buy' signal yet. Other technials are mixed with 'buy' signals in the MACD and On-Balance-Volume are offset by 'sell' triggers in +DI/-DI and Stochastics.
The Nasdaq kicked off a new bounce with the MACD recovering a little but all other technicals net bearish. Still much work to do with the index trading inside the range.
The Russell 2000 experienced a modest gain as the bounce develops. The risk:reward is still favourable for bulls with a stop on a loss of 1,539 and an expectation for a break from the triangle and a move higher.
The Dow Jones may have laid a preliminary 'bull trap' but the index remains above the downward channel. Volume was light although the 'tweezer low' is still in play. Bulls still have a workable edge here.
For tomorrow it will be about building bullish momentum on today's action. The Dow Jones Industrial Average and the Russell 2000 are perhaps best placed for bulls to push their advantage.
You've now read my opinion, next read Douglas' blog.
I trade a small account on eToro, and invest using Ameritrade. If you would like to join me on eToro, register through the banner link and search for "fallond".
If you are new to spread betting, here is a guide on position size based on eToro's system.
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Accepting KIVA gift certificates to help support the work on this blog. All certificates gifted are converted into loans for those who need the help more.
Follow Me on Twitter
Dr. Declan Fallon is a blogger who trades for fun on eToro and can be copied for free. I invest in my pension fund as a buy-and-hold.
The S&P generated a small uptick in relative performance but not enough to trigger a 'buy' signal yet. Other technials are mixed with 'buy' signals in the MACD and On-Balance-Volume are offset by 'sell' triggers in +DI/-DI and Stochastics.
The Nasdaq kicked off a new bounce with the MACD recovering a little but all other technicals net bearish. Still much work to do with the index trading inside the range.
The Russell 2000 experienced a modest gain as the bounce develops. The risk:reward is still favourable for bulls with a stop on a loss of 1,539 and an expectation for a break from the triangle and a move higher.
The Dow Jones may have laid a preliminary 'bull trap' but the index remains above the downward channel. Volume was light although the 'tweezer low' is still in play. Bulls still have a workable edge here.
For tomorrow it will be about building bullish momentum on today's action. The Dow Jones Industrial Average and the Russell 2000 are perhaps best placed for bulls to push their advantage.
You've now read my opinion, next read Douglas' blog.
I trade a small account on eToro, and invest using Ameritrade. If you would like to join me on eToro, register through the banner link and search for "fallond".
If you are new to spread betting, here is a guide on position size based on eToro's system.
---
Accepting KIVA gift certificates to help support the work on this blog. All certificates gifted are converted into loans for those who need the help more.
Follow Me on Twitter
Dr. Declan Fallon is a blogger who trades for fun on eToro and can be copied for free. I invest in my pension fund as a buy-and-hold.
